For the 3rd month in a row, Consumer Credit growth rose less than expected. At $13.226 billion (against expectations of a $16.5bn gain), this is the smallest growth since Nov 2013. This is the first 3-month miss since June 2009. Once again, as expected, the rise is practically entirely due to student and auto loans (which now face 27% delinquency for the subprime borrowers) which rose by $12.3 billion, or 93% of the total.
First 3 month miss since June 2009
[3]
However, perhaps the most notable facet is a 66% collapse in revolving credit growth from a year ago. As the chart below shows, total revolving credit rose by just $922 million in October: this was two-thirds less than the $2.8 billion increase in revolving credit a year ago, and is the second lowest increase in revolving credit in the past 8 months.
[4]
As for sources of consumer credit, well... this one is self-explanatory.
[5]
